Sat, Jun 09, 2012 - Page 11 News List

[ BUSINESS BRIEFS ]

Staff writer, with Agencies

TAIEX falls on debt worries

The TAIEX pulled back yesterday, closing below the 7,000-point mark amid lingering concerns over debt problems in the eurozone, dealers said.

While China’s interest rate cuts lent some support to select local stocks with close business ties to China, selling in market heavyweights, such as smartphone vendor HTC Corp (宏達電) and Taiwan Semiconductor Manufacturing Co (台積電), kept the benchmark index in negative territory throughout the session.

The weighted index closed down 80.66 points, or 1.14 percent, at 6,999.65, after moving between 6,979.82 and 7,063.08 on turnover of NT$50.80 billion (US$1.70 billion).

TSMC fell 2.38 percent to close at NT$77.90, while HTC shed 7 percent, the maximum daily limit, to close at NT$352 amid pessimism over the firm’s earnings outlook.

At the end of the session, the plastics and chemicals sector suffered the heaviest losses among the eight major stock categories, finishing down 1.65 percent.

Yields drop on Greece fears

The yield on government 1 percent bonds that mature in January 2017 dropped one basis point this week, and yesterday the yield closed at 0.922 percent, according to GRETAI Securities Market.

The yield reached 0.91 percent on Monday, the lowest level for benchmark five-year rates since October 2010.

Traders are shifting their focus to longer-maturity debt, especially 10-year notes, on concerns that elections in Greece next month will fan volatility.

The yield on the generic 10-year government bond fell one basis point yesterday and two basis points this week to 1.17 percent.

The overnight interbank lending rate was steady yesterday and for the week at 0.514 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.

Oil imports decline 7.4 percent

Taiwan, which imports more than 99 percent of its crude oil needs, purchased less of the fuel last month as Formosa Petrochemical Corp (台塑石化) reduced refining capacity.

Shipments declined 7.4 percent from a year earlier to 22.5 million barrels last month, the Ministry of Finance said in a statement on Thursday. The nation’s oil bill declined 6.2 percent to US$2.69 billion last month, it said.

Crude oil processed in May at Formosa Petrochemical was on average 61,000 barrels a day less than a year earlier, the company said in a statement to the Taiwan Stock Exchange on Monday.

The refiner halted a distillation unit for maintenance last month, according to the statement.

Taiwan imported 1.1 million tonnes of liquefied gas last month for US$875 million, according to data from Directorate-General of Customs.

The amount was 13 percent higher than 977,628 tonnes the previous month.

HTC facing new legal battle

The US International Trade Commission (ITC) said on Thursday it has voted to launch an investigation into a complaint about an integrated circuit patent infringement against Taiwan-based smartphone vendor HTC Corp (宏達電).

The ITC said the complaint filed by US-based Peregrine Semiconductor Corp last month alleges that HTC has infringed upon its radio frequency technology. In the complaint, Peregrine also named HTC America Inc, Motorola Mobility Inc and RF Micro Devices Inc as respondents.

New Taiwan dollar declines

The New Taiwan dollar fell against the US dollar yesterday, declining NT$0.07 to close at NT$29.976.

Turnover totaled US$693 million during the trading session.

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